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European Shares Likely To Follow Asian Peers Higher

stockmarkets dec12 02jun20 lt

European stocks are likely to open higher on Tuesday, though underlying sentiment may remain cautious after China reportedly stopped purchases of some American farm goods and U.S. President Donald Trump threatened to deploy the military to quell civil unrest erupting across the nation.

Meanwhile, World Health Organization (WHO) experts and a range of other scientists said on Monday there was no evidence to support an assertion by a high-profile Italian doctor that the coronavirus is losing potency and has become less lethal.

WHO chief Tedros Adhanom Ghebreyesus told an online media briefing he hopes the agency could continue its longstanding collaboration with the United States.

"The U.S. government and its people's contribution and generosity over many decades have been immense. It is WHO's wish for this collaboration to continue," he added.

Asian markets are moving higher on optimism over an economic rebound from the coronavirus crisis and the dollar weakened, while oil prices rose over 1 percent ahead of an OPEC+ meeting on extending output cuts.

In economic releases, mortgage approvals data from the U.K. is due later in the session, headlining a light day for the European economic news.

U.S. stocks rose overnight as optimism around economic reopenings offset nationwide protests against police brutality as well as rising U.S.-China tensions. On the data front, a report showed U.S. manufacturing activity contracted at a slower rate in the month of May.

The Dow Jones Industrial Average gained 0.4 percent, while the tech-heavy Nasdaq Composite added 0.7 percent and the S&P 500 rose 0.4 percent to reach their best closing levels in three months.

European markets rallied on Monday as U.S. President Trump's comments didn't contain any threat of tariff hikes on China and a private survey showed the Chinese economy returned to expansion in May.

The pan European Stoxx 600 climbed 1.1 percent. France's CAC 40 index surged 1.4 percent and the U.K.'s FTSE 100 advanced 1.5 percent, while markets in Germany and Switzerland were closed for Whit Monday holiday.

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